Could investing in a racehorse make you serious money?
There is something exciting and prestigious about owning a racehorse – it’s certainly cheaper than buying a professional sports team and there’s a grand element to the sport that makes it a thrilling concept. But is it worth the investment and is owning a racehorse a good way of making cash? Finding a good odds calculator would also help you out as you could have a better understanding of horse racing.
The Cost of Racehorses
Owning and maintaining a racehorse, as with any animal, is a costly hobby. Aside from the initial cost of buying a racehorse, there is a long list of other costs you will have to take on and be responsible for. In fact, the average owner can be looking at more than £50,000 in expenses per horse for their training, boarding and other expenses. These include:
- The day rate the owners pay for their horse to be trained, fed and looked after. This can vary but it can be over £100 a day for each horse. Owners who race at the bigger named tracks can expect to spend more than £30,000 in training fees.
- Shoeing is another expensive aspect of horse ownership, but it’s vital for the health and wellbeing of the horse. This can exceed £300 a month for each horse, depending on the shoe the horse needs.
- Vet bills if the animal gets injured or ill. Horses also need vitamins and may require ongoing medication to stay in top shape for racing, which can soon mount up and become costly.
- Jockey fees are what the owner of the horse pays the jockey for their horse to be ridden in a race, which can be as much as £100 a race. Jockeys also earn a percentage of the purse if the horse wins, places or shows.
- Transporting a horse to and from different events is also expensive. People who choose to race their horses nationally will have to pay much more than those who race closer to home.
Successes with racehorses are rare, but they’re not unheard of and there are cases of owners making money when their horses win. The owner typically takes home 60 percent of the purse while second place earns them 20 percent and third place receive 12 percent. If the owners invest in a winning horse, they are more likely to earn more over time, but there’s no guarantee in any race. The real earner in horse racing is in breeding, particularly if the horse is a champion. In fact, stud fees can reach millions for some horses and the younger they are when they retire, the more opportunity there is for the horse to sire more offspring.
As with any gamble, some lucky few have managed to earn big from owning and investing in racehorses. But for most people, the costs of maintaining a racehorse outweigh the earnings they’d be likely to see from the horse unless it was regular champion. There’s tremendous risk involved in this type of investment and it is something that only someone who is a true gambler at heart would take on.